UNIVERSITY OF CALIFORNIA AT LOS ANGELES #. lj:i!V dBHintrngf) €Dition CANADA AND ITS PROVINCES IN TWENTY-TWO VOLUMES AND INDEX VOLUME V UNITED CANADA 1840-1867 The Edinburgh Edition of ' Canada and its Provinces ' is limited to ^75 Impressions on All-Rag Watermarked Paper This Impression is Number.... /(p.. xp ii' rwi*,Y<K V . -rjw's «n wo-v\. LORD ELGIN From an engraving in tlu: Dominion Archives CANADA AND ITS PROVINCES A HISTORY OF THE CANADIAN PEOPLE AND THEIR INSTITUTIONS BY ONE HUNDRED ASSOCIATES GENERAL EDITORS: ADAM SHORTT AND ARTHUR G. DOUGHTY VOLUME V UNITED CANADA 1840-1867 EDINBURGH EDITION PRINTED BY T. i^ A. CONSTABLE AT THE EDINBURGH UNIVERSITY PRESS FOR THE PUBLISHERS ASSOCIATION OF CANADA LIMITED TORONTO 1914 J: e \J !'-J C .O Copyright in all countries subscribing to the Berne Convention — V. 5 CONTENTS PAGE THE UNION: GENERAL OUTLINES, 1840-1867. By W. L. Grant . .... • 3 PARTIES AND POLITICS, 1840-1867. By J. L. MORISON 1. LORD SYDENHAM'S ADMINISTRATION . I3 Social and Political Conditions — Character and Training of Poulett Thomson — The Political Stage — Sydenham's Services to Canada 11. BAGOT, METCALFE, AND THE POLITICAL CRISIS . 28 A Troubled Period—Sir Charles Bagot's Administration—An Experienced Colonial Ruler— Political Storms—A Period of Deadlock—Attitude of the Colonial Office in. LORD ELGIN'S ADMINISTRATION ..... 48 An Eminent Peelite—Problems to be faced—A Turning-point in Canadian History—The Rebellion Losses Bill—A Con- structive Statesman—The Clergy Reserves—Political Com- binations and Permutations —The Fall of the Reform Party —Reciprocity with the United States—The Close of Elgin's Rule IV. LIBERAL-CONSERVATISM AND CONFEDERATION . -77 A New Political Day Dawns—Great National Issues Liberal-Conservatism — The French-Canadian Question Political Expedients—The Confederation Movement — A Union of Parties—A Retrospect CONSTITUTIONAL DEVELOPMENT, 1840-1867. By EDWARD Kylie i. responsible government ..... i05 Lord Durham's Report—Lord Sydenham—Sir Charles Bagot —Sir Charles Metcalfe—Lord Elgin—The Full Measure of Responsible Government XL THE EXTENSION OF CANADA'S POWERS . .131 in. THE LEGISLATURE ....... I36 The Assembly—The Legislative Council Vlll UNITED CANADA PAGE IV. CONFEDERATION ....... 147 The Failure of the Union—The British North America Act V. THE JUDICIARY ..... .157 Judges independent of the Crown—Growth of the Judicial System HISTORY OF PUBLIC FINANCE, 1840-1867. By Duncan M'=Arthur A CONFLICT OF INTERESTS . i6s SYDENHAM'S BANKING SCHEME 167 THE TARIFF UNDER THE UNION 169 THE CIVIL LIST 170 THE REBELLION LOSSES CLAIMS 170 REVENUE AND THE PUBLIC DEBT 171 THE RAILWAY POLICY J 73 THE MUNICIPAL LOAN FUND 175 THE PUBLIC ACCOUNTS 176 FINANCIAL DEPRESSION 177 FINANCIAL EXPEDIENTS 178 CONFEDERATION AND FINANCE 180 ECONOMIC HISTORY, 1840-1867. By Adam Shortt I. GENERAL VIEW OF ECONOMIC CONDITIONS i8s IL CANADIAN INDUSTRY AND FOREIGN TRADE 188 in. THE TEA TRADE .... 197 IV. THE TIMBER TRADE 199 V. IMMIGRATION .... 204 VL CANADIAN AND AMERICAN TRADE RIVALRY 210 VIL BRITISH TARIFF REFORM AND CANADA . 214 VIIL THE NAVIGATION ACTS 224 IX. THE AGITATION FOR RECIPROCITY 227 X. THE RECIPROCITY TREATY 242 CURRENCY AND BANKING, 1840-1867. By Adam Shortt 1. LORD SYDENHAM AND CANADIAN BANKING . .261 IL CURRENCY STANDARDS ...... 264 in. NOTE-ISSUING PRIVILEGES ..... 269 IV DECIMAL CURRENCY ...... 274 CONTENTS ix PAGEPAGE V. THE BANKS AND SPECULATION ..... 277 VI. GALT AND CANADIAN BANKING . 283 VII. NOTABLE BANK FAILURES . 288 WESTERN EXPLORATION, 1840-1867, By Lawrence J. Burpee I. THE NORTH-WEST PASSAGE ..... 295 Sir John Franklin's Last Voyage—Franklin Search Expeditions II. THE FAR NORTH AND THE YUKON .... 306 The Hudson's Bay Company—Robert Campbell in. FROM LAKE SUPERIOR TO THE PACIFIC . • S'S Dawson, Hind and Palliser—Sir George Simpson—Paul Kane—Milton and Cheadle INDIAN AFFAIRS, 1840-1867. By DUNCAN C. ScOTT L THE PROVINCE OF CANADA ..... 33I Organized Effort — Education — The Legal Status of the Indians—The Indian Department n. THE MARITIME PROVINCES ..... 358 Nova Scotia—New Brunswick—Prince Edward Island THE POST OFFICE, 1840-1867. By William Smith L NEW ERA IN POSTAL AFFAIRS . _ . 365 A Revolution through Steam Carriage—The Burden of High Rates—Sydenham's Postal Commission IL THE MARITIME PROVINCES ..... 372 Early Postal Effort—The Newspaper Postage Question—The Colonial Post Office Bill—Establishment of the Mail Steamer — Inadequate Mail Services—A Demand for Reduced Rates in. POST OFFICE REFORM ...... 387 Clanricarde's Policy—The Nova Scotia Postal Committee IV. PROVINCIAL CONTROL ...... 392 A Period of Progress—Railway Mail Service—The Ocean Mail Service—A Setback through Steamship Disasters ILLUSTRATIONS LORD ELGIN . Frontispiece From an engi-aving in the Do7ninion Archives SIR CHARLES BAGOT Facing page 32 Fr07n an engraving in the Dominion Archives SIR CHARLES METCALFE .... 44 From an engraving by IVilliam Warner after the painting by A. Bradish SIR LOUIS H. LA FONTAINE .... 54 After a photograph by Nottnan, Montreal ALEXANDER MORRIS 96 From a photograph by Notman, Montreal JOHN RAE 298 From an engraving in the Dominion Archives ADMIRAL SIR JOHN ROSS .... 304 From the painting by B. /i. Faulktur in the Scottish National Portrait Gallery THE ARCTIC COUNCIL DISCUSSING A PLAN OF SEARCH FOR SIR JOHN FRANKLIN 306 From- the painting by Stephen Pearce in the National Portrait Gallery PAINTING BY PAUL KANE—A BLACKFOOT CHIEF AND HIS SUBORDINATES .... 320 From the original in the DoTi:inion Archives THE UNION: GENERAL OUTLINES 1 840- 1 86 7 VOL. V THE UNION: GENERAL OUTLINES 18401867 THE period 1840-67 saw the working out of responsible government and full liberty given to Canada to commit her own mistakes. In this period was laid the foundation of a new system of colonial policy to which federation added the superstructure. In Lord Durham's great Report were combined both elements of the eventual solution, responsible government and federation, for it must not be forgotten that responsible government alone proved inadequate, and worked in its fulness only when to it federa- tion was added. The history of United Canada begins with Sydenham and ends with Macdonald, between whom there is a strong resemblance ; each a mixture, in what proportions we must agree to differ, of parliamentary strategist and statesman. The London of the Regency and of George iv differed widely from the rough pioneer life of the Bay of Quinte and the whiskified gaieties of early Kingston ; but the men who formed and worked the first cabinets after the Union and after Confederation are essentially the same : autocrats both, veiling the autocracy behind a smile and a jest ; con- structive opportunists, who did not worry overmuch about principles, but carried on Her Majesty's government, and slowly developed a little state into a great one. Neither was squeamish ; Sydenham gerrymandered Montreal, and Macdonald gerrymandered Ontario ; if an opponent had his price and was worth buying, bought he was ; if the one had 'a dangUng after an old London harridan,' all Canada knew of the early amours of the other. But in a time of doubt and uncertainty and faintness of heart they never despaired of Canada or of the Empire ; their follies and their weak- ' 4 THE UNION : GENERAL OUTLINES, 1840-1867 nesses are buried with them ; their nobler part lives. The difference between them, to Canadians all-important, is that Sydenham was an Englishman, Macdonald a Canadian ; at the beginning Canada was still under tutors and governors, at the end she had developed an ' old parliamentary hand of her own. This development is traced in this volume by Professor Morison in a chapter at once original and sane. Professor Morison has strong views, and expresses them with a clearness which does not stop to regard estab- lished reputations. In his desire to avoid the falsehood of extremes he does not spare those two very typical Scots, George Brown and Bishop Strachan, and probably more than one lance will be broken in their defence. Strachan's multifarious and, on the whole, beneficent activities as teacher and churchman are treated elsewhere,^ and Professor Morison would be the first to acknowledge that his portrait of the Aberdeen bull-dog needs to be supplemented. Of one of his criticisms of Brown a word must be said later on. But that the general development is rightly and wisely sketched, few will deny. Our period opens with Lord Sydenham. Under him Canadian parties begin to assume coherence ; gradually an administration, with separate heads of departments, takes the place of the chaotic council of pre-Rebellion days. But a cabinet must consist not merely of heads of departments, but of heads of departments working together in unity, carrying out a systematic policy. ' It doesn't matter a damn what we think, gentlemen,' said Lord Melbourne on a famous occasion, ' but we must all say the same thing.' A cabinet requires a leader, and alike in Canada and in Great Britain history proves the necessity of a prime minister. To give this keystone to the arch, Sydenham was forced to become his own prime minister, and we thus have the para- dox that the governor who introduced responsible govern- ment is also the governor whose personal interference was most marked, whose personal predominance was most absolute. Sydenham was followed by Bagot, who had the absence ' See ' History of Secondary and Higher Education ' in section ix. THE UNION : GENERAL OUTLINES, 1840-1867 5 of strong convictions natural to a diplomat, and whose admission into the cabinet of the reform leaders paved the way for a Canadian prime minister ; for although the cabinet was a coalition, Baldwin and La Fontaine were its strongest members, and the illness of Bagot threw power more and more into their hands. Then came the famous quarrel with Lord Metcalfe, in which the very worth of the tory leader made the downfall, when it came, the more complete.